HMC Stock Analysis: Buy, Sell, or Hold?
HMC - Honda Motor Co., Ltd. American Depositary Share, each representing three (3) shares of Common Stock
$30.33
0.04 (0.13%)
▲
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 12, 2026
12d
Get Alerted When HMC Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
💡 BUY OPPORTUNITY: HMC shows positive signals but monitor for confirmation. Market pricing in 0.2% decline. Moderate conviction.
💡 BUY OPPORTUNITY: HMC shows positive signals but monitor for confirmation. Market pricing in 0.2% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$58.98
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$36.62
17.2% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 7.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: HMC is currently trading at $30.33, which is considered fair relative to its 30-day fair value range of $29.64 to $30.75. The stock's valuation (Forward PE: 7.5) is in line with its historical norms (7.5). Remarkably, the market is currently pricing in an annual earnings decline of 0.2% over the next few years. This pessimistic expectation contrasts with the company's recent 37.9% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, HMC is in a downtrend. Immediate support is located at $29.32, while resistance sits at $31.30.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $36.39 (+20.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, HMC is in a downtrend. Immediate support is located at $29.32, while resistance sits at $31.30.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $36.39 (+20.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$29.64 -
$30.75
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 20.1% below Wall St target ($36.39)
Fair Price Analysis
30-Day Fair Range
$29.64 -
$30.75
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$29.32
Resistance Level
$31.30
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
7.50
Wall Street Target
$36.39
(+20.1%)
Revenue Growth (YoY)
-1.9%
Earnings Growth (YoY)
37.9%
Profit Margin
3.0%
Valuation Discount vs History
-0.2% cheaper
PE vs Historical
7.5 vs 7.5
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.2%
(market-implied from PE analysis)
1-Year Target
$30.23
(0%)
2-Year Target
$30.17
(0%)
3-Year Target
$30.11
(-1%)
3-Yr Target (if PE normalizes)
(PE: 8→8)
PE COMPRESSION
$30.11
(-1%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 28.8%)
$192.44
(+535%)
Base:
(SPY PE: 7.5, Growth: 28.8%)
$64.73
(+114%)
Bear:
(PE: 6.4, Growth: 28.8%)
$55.02
(+82%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (8x PE) as earnings recover.
Trailing PE: 10.15 | Current EPS (TTM): $2.95
Bull Case
$45.07
(+49%)
Analyst growth 36.9%, PE expands to 11.2
Base Case
$40.97
(+35%)
Market implied 36.9%, PE stable at 10.2
Bear Case
$20.35
(-33%)
Severe decline -20.0%, PE contracts to 8.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 30, 2026 5:51 PM ET
Data refreshes hourly during market hours. Next update: 6:51 PM
Data refreshes hourly during market hours. Next update: 6:51 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is HMC showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Auto Manufacturers Stocks
Top-rated stocks in Auto Manufacturers by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
LI
Li Auto Inc |
STRONG BUY
28 analysts |
$24 | 57 HOLD |
|
XPEV
Xpeng Inc |
STRONG BUY
28 analysts |
$28 | 50 HOLD |
|
GM
General Motors Company |
HOLD
29 analysts |
$86 | 63 BUY |
|
NIO
Nio Inc Class A ADR |
BUY
27 analysts |
$7 | 64 BUY |
|
TSLA
Tesla Inc |
HOLD
47 analysts |
$411 | 56 HOLD |
Advanced HMC Option Strategies
Professional options setups generated by AI based on today's HMC price and gamma walls.
